Tesla announced Monday it bought $1.5 billion (Kshs 164 billion) in bitcoin. As per the filing with the SEC, the company said it bought bitcoin for “more flexibility to further diversify and maximize returns on our cash.”
This comes just after the company decided to partner with Samsung to develop self-driving chipsets. Tesla also said it will begin accepting bitcoin as a form of payment for its products in the near future.
This makes them the first major automaker to accept bitcoin as a form of currency. It’s no secret that Tesla CEO, Elon Musk has been quite vocal about backing cryptocurrency.
He even added #bitcoin to his Twitter profile recently. The Tesla investment news skyrocketed the bitcoin price to up to more than $43,000 as of writing this article.
Tesla made significant profits as of 2020 ($19 billion in cash and cash equivalents) and decided to invest some of it in bitcoin. Bitcoin’s value has been gradually increasing over the years although it remains a volatile cryptocurrency.
Kenyans have shown subtle interest in Bitcoin, mainly because there is an air of mystery surrounding the cryptocurrency. People don’t want to invest in something they don’t understand clearly.
However, it is twelve years since bitcoin was launched in 2007 and it appears it is here to stay. Many regard it as the “money of the future” and based on Tesla’s investment, chances are it will be.
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Alfred Gitonga is a passionate tech news writer with a deep interest in smartphones and related technologies. He is a staff writer at Mobitrends.co.ke.
